Canada’s ARC Resources surges in Q4

Canadian Montney-focused producer ARC Resources reported Q4 2021 net income of C$678mn (US$533mn) on February 10, up from C$121mn in the comparable 2020 period.

Recognised net income for all of 2021 increased to C$787mn from a loss of C$547mn in 2020, with cash flow from operating activities jumping to C$2bn from C$655.7mn.

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Fourth quarter production averaged 345,831 barrels of oil equivalent (boe)/day (62% natural gas), generating cash flow of C$669mn and funds from operations of C$834mn. A year earlier, production averaged 169,468 boe/day, generating cash flow of C$201mn.

Much of the production gains reflected ARC’s acquisition of Seven Generations Energy last spring, a business combination which ARC said has generated synergies of about C$190mn, “significantly surpassing” its expectations of C$110mn in savings.

Natural gas production in Q4 2021 averaged 1.29bn ft³/day, up from 783mn ft³/day in Q4 2020, with full-year production averaging 1.15bn ft³/day compared with 2020 production of 739mn ft³/day.

Finally, ARC’s average realised gas price in the quarter rose to C$6.45/’000 ft³ from C$2.88/’000 ft³ a year earlier.